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SBI cuts interest rates for senior citizens also

Following a cut in bank rate by Reserve Bank of India, three leading public-sector banks, including State Bank of India and Industrial Development Bank of India, cut their deposit rates by 25 to 100 basis points.

SBI has also slashed interest rates for deposits of senior citizens by 0.75 per cent across all three tenures with effect from November 1.

Deposits of one year to less than two years, two years to three years, and three and above would now attract a rate of 7 per cent (7.75 per cent earlier), 7.25 per cent (8 per cent and 7.50 per cent (8.25 per cent) respectively, SBI said in a statement in Mumbai on Wednesday.

SBI has also done away with the differential rate payable on domestic deposits of Rs 1 crore (Rs 10 million) and above with maturities of less than one year.

However, the differential interest rate would be paid for deposits with maturities above one year irrespective of their quantum, SBI said in a release.

As per the revised rates, a deposit of 15-45 days tenure would attract an interest of 4.5 per cent. The rate for short-term maturity deposits of 7-14 days for Rs 15 lakh (1.5 million) and above will be four per cent.

Meanwhile, Bank of India also announced a reduction in savings deposit rates by 25 basis points and 0.50 per cent cut in its prime term lending rate to 12 per cent and prime lending rate to 11.5 per cent.

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